International Dealer News IDN 148 April/May 2019 | Page 28

THE AMERICAN REPORT
Polaris 2018 - Indian up overall; Slingshots
and Heavyweights down; Middleweights up
Polaris has reported its 4Q and 2018
full year fiscals, with adjusted sales for
the fourth quarter of 2018 increased
by +14% to $1,627 million.
Motorcycle segment sales, including
PG&A, totalled $87 million, down -15
percent compared to the fourth
quarter of 2017. Indian sales increased
slightly but were more than offset by
the decline in Slingshot sales.
Domestic U.S. motorcycle industry
retail sales, 900 cc and above, were
down low double-digits percent in the
2018 fourth quarter. Indian Motorcycle
gained market share for the 2018
fourth quarter on a year-over-year
basis. Slingshot's retail sales were
down substantially during the quarter.
North American consumer retail sales
for the Polaris motorcycle segment,
including both Indian Motorcycle and
Slingshot, decreased high-teens
during the 2018 fourth quarter. Indian
Motorcycle retail sales decreased low
double-digits, but its 'middleweight'
models were up by low single digits.
Scott Wine, Chairman and Chief
Indian's new 120 hp FTR 1200 will be assembled
at the Polaris ATV/UTV factory in Poland from
CKD kits shipped from its Spirit Lake,
Iowa factory
Scott Wine, CEO, said that Polaris
had been able to "adapt and
execute our strategy to account for
tariffs and other external pressures"
Executive Officer of Polaris Industries
Inc., said that "between sales growth
in almost all of our segments,
improved operational efficiencies and
a lower tax rate, we more than offset
macroeconomic and tariff headwinds.
Growth and market share gains in Off-
Road Vehicles further expanded our
position as the global leader in
powersports.
"We are encouraged by our growth
prospects for 2019 and beyond, but
keenly aware of, and prepared for, the
challenges and uncertainties
presented by global trade and
economic complications."
Adjusted for Victory wind-down costs,
gross motorcycle segment profit for
the fourth quarter of 2018 was $2
million compared to $5 million in the
fourth quarter of 2017. Reported total
all-segment sales for the full year of
2018 increased +12% to $6,079
million. North American retail sales
increased +6% for the quarter
compared to last year; ORV North
American retail sales were up low
single digits, driven by side-by-side
vehicle sales.
U.S. households with a motorcycle
climb to record 8% in 2018
A Motorcycle Industry Council
(MIC) owner survey has
revealed that despite the
present soft new motorcycle
registration figures in the
United States, there are more
bikes in use with a record 8% of
U.S. households reported to own
at least one motorcycle.
Households with a motorcycle
rose from 6.94 percent in 2014
(the last full survey) to a record
"number of
motorcycles
owned reached
record levels"
8.02 percent in 2018, an
increase of more than 1.5
million homes. The United
States Census Bureau's most
recent estimate put the number
of U.S. households at
126,224,000. The MIC owner
survey found that 10,124,400 of
those homes had a motorcycle.
"The household penetration
numbers have always been
28
among the most important
figures to us," said MIC
President and CEO Tim Buche.
"We're certainly happy to see
more homes that have a
motorcycle. Riders who talk
about motorcycling to friends
and neighbours help to inspire
people who don't yet ride."
The number of motorcycles
owned also reached record
levels, according to the survey,
jumping to 13,158,100 last year,
an increase of more than 2.5
million motorcycles compared
to 2014. It is even higher than
the previous record from 2009
(11,704,500), which followed a
long period of high-volume new
bike sales.
The estimated number of
motorcycles in use rose to an
increase of more than 2 million
since 2014. And that number
was more than 1 million better
than the record figure from
2009, when 11,015,105
motorcycles were in use.
"Modern motorcycles are high-
quality machines, enabling the
pre-owned market to be a key
part of the overall growth in the
INTERNATIONAL DEALER NEWS - APRIL/MAY 2019
motorcycle and rider
population," said Jim Woodruff,
secretary/treasurer of the MIC
Board of Directors and COO of
National Powersport Auctions.
"The annual pre-owned market
is actually three times larger
than the new market. Used
bikes appeal to many riders
because there are so many
options in terms of price and
style."
"13,158,100
motorcycles in
use in 2018"
The 2018 survey also revealed
that the number of motorcycles
per household with a bike stood
at 1.30, up slightly compared
with 2014 when it was 1.23, but
down compared to 1.53
recorded in 2009.
The percentage of motorcycles
in running order was down 3
percentage points, from 96.1
percent in 2014 to 93 percent in
2018. But compared to a decade
Tim Buche, MIC President and CEO:
"The household penetration
numbers have always been among
the most important statistics for us"
ago (94.1 percent) it was only
down one percentage point last
year.
"As used units become a larger
part of the overall motorcycle
population, it's not surprising to
see a slight decrease in the
percentage of operating units,"
Woodruff said. "Our research
shows that the average age of a
pre-owned motorcycle sold in
the U.S. is approximately eight
years old. Plus, vintage bikes are
on trend now and many riders
are keeping non-runners as part
of their collection."
The MIC is headquartered in
Irvine, Calif., with a government
relations office in metropolitan
Washington, D.C. First called the
MIC in 1970, the organisation
has been in operation since
1914.
www.mic.org
www.idnmag.com